Saudi banks’ outstanding loan portfolio climbed to 3.13 trillion riyals ($833.7 billion) at the end of April, up 16.51 per cent from a year earlier and marking the fastest annual expansion since mid-2021.
According to figures from the Saudi Central Bank, also known as Sama, the double-digit jump adds roughly 443bn riyals in new credit over 12 months and underscores how the kingdom’s project-driven growth model is reshaping balance-sheet priorities across the banking system.
Behind the headline figure is a striking pivot towards business customers. Corporate borrowing jumped 22pc year on year to 1.72trn riyals, lifting its share of total credit above 55pc, while loans to individuals rose a more measured 10.4pc to about 1.4trn riyals.
Real estate developers remain the largest borrowers, accounting for 21.77pc of outstanding corporate credit. This division was followed by the wholesale and retail trade sector at 12.29pc, utilities, including electricity, gas, and water, at 10.98pc, and manufacturing, which is close behind at 10.9pc.
Within the fastest-growing niches, transport and storage finance soared 47.5pc to 67.6bn riyals, education credit expanded 44.8pc to 9.5bn riyals, real-estate borrowing increased nearly 39pc, and loans to financial services and insurance firms jumped 35.1pc to 159.9bn riyals, according to Sama.
Large national projects are driving most of the new business borrowing. Huge developments, such as NEOM, the Red Sea resort, Diriyah, and King Salman International Airport, require long-term bank loans to enable builders and suppliers to continue their operations.
Newer industries, including green hydrogen plants and data centres, utilise short-term credit to cover their costs while they are being established.
At the same time, home loan growth is slowing because many families took advantage of subsidised Sakani mortgages between 2021 and 2023.
A March report by JLL says Saudi Arabia’s non-oil economy should grow 5.8pc in this year, up from 4.5pc in 2024.
JLL expects the real estate market to be worth about $101.6bn by 2029, an average rise of 8 pc a year, and noted that Grade-A offices in Riyadh are almost fully occupied, pushing prime rents to $609 per square metre.
Such conditions translate directly into bank-financed demand for land acquisition, infrastructure outlays and bridging loans for developers racing to deliver stock ahead of the Fifa World Cup 2030 and Expo 2030.
Although real-estate developers still claim the largest slice of corporate credit, another borrower group is accelerating just as quickly: insurers. As the property boom feeds through to compulsory project coverage and fast-growing medical and motor lines, the insurance industry’s need for cash and capital is rising sharply.
According to KPMG’s Saudi Arabia Insurance Overview 2025, sector revenue jumped 16.9pc year on year in the third quarter of 2024 as compulsory medical cover, brisk motor sales, and a wave of big property projects swelled premium volumes and claims reserves. The same report flags heavy spending on “technological innovation” as firms roll out IFRS-17 systems and digital sales platforms.
Under Sama’s rulebook, however, ordinary loans or bond proceeds cannot be counted toward an insurer’s solvency margin unless the central bank gives written approval, and only Basel-style Tier-2 subordinated instruments qualify as supplementary capital.
Facing larger day-to-day cash needs, significant IT expenditures, and tighter capital buffers, alongside a regulator-driven wave of mergers that has already prompted players like Amana Co-operative and ACIG to explore tie-ups to gain scale, insurers are increasingly turning to banks for revolving credit lines and subordinated sukuk financing.
The funding strain is now visible in the monetary statistics. Outstanding bank credit to “financial and insurance activities,” registering one of the fastest growth rates of any sector, reflecting a mix of liquidity borrowings.
The education sector is also borrowing heavily to meet Vision 2030 targets. April’s EDGEx 2025 expo in Riyadh attracted more than 20,000 delegates and showcased private-school growth plans that could lift the non-state share of enrolment from roughly 17pc to 25pc within five years.
New digital platforms such as Madaris promise to streamline admissions and tuition payments, while PwC’s purchase of Saudi consultancy Emkan underscores the sector’s investment appeal. These dynamics help explain why bank lending to education providers is growing at more than four times the system average.
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